SmartCity has confirmed it is seeking to raise funds from banks for the next phases of the Ricasoli project but has not commented on reports that its request for funding from HSBC was denied.
The Dubai-owned company, in which the Maltese government has a minority nine per cent stake, is seeking finances for the multi-million euro project from "domestic banks and international banks based in Malta and abroad".
Last week, The Malta Business Weekly reported the management of SmartCity Malta had talks with HSBC, Bank of Valletta and Lombard Bank to seek financing for the development. The newspaper reported that HSBC refused to extend credit to the company citing overexposure in Dubai.
SmartCity CEO Fareed Abdulrahman did not answer when asked by The Times whether HSBC's refusal to extend credit facilities was a sign of lack of confidence in the Malta project.
In a large-scale, long-term development like SmartCity Malta, he said, it was "crucial and normal business practice to strategically optimise the support that can be given by financial institutions".
Mr Abdulrahman insisted discussions with the banks showed his company was "committed to Malta and Maltese businesses".
HSBC is one of the international banks to have large exposure in the United Arab Emirates. It is expected to be negatively hit after Dubai government-owned company, Dubai World, announced two weeks ago it would delay billions of dollars in debt payments.
The financial turmoil in Dubai is of concern to Malta given Dubai's commercial interests in three major companies, two of them listed on the stock exchange.
Although Dubai World is government-owned and has no relation to Dubai Holding, which owns SmartCity Malta and Go plc, both companies are the property of the emirate's ruler Sheikh Mohammed bin Rashid al-Maktoum.
The Dubai government's reluctance to shore up state-owned companies if in financial difficulty led international agencies to downgrade the credit rating of SmartCity Malta's parent company.
International credit rating agencies are not making a distinction between companies owned by the Dubai government and others personally owned by the emirate's ruler.
Dubai Holding had its credit rating lowered over the past week even though it is the personal investment arm of the emirate's ruler.
Last week, Investments Minister Austin Gatt told Parliament there was no relation between Dubai World and Dubai Holding, insisting one was owned by the Dubai government while Dubai Holding was the personal property of the sheikh.
The third Maltese company with Dubai-related investment is Corinthia's International Hotel Investments. IHI, listed on the stock exchange, is part-owned by Nakheel Hotels, a subsidiary of Dubai World's Nakheel.